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  • Resource Capital Needs To Get Its Act Together [View article]
    M:

    Interestingly, if one had bought RSO in March 2009 and held it to Friday's close, the average annualized return, including reinvested dividends, is 23.05%. Not too shabby.
    May 24, 2015. 02:25 PM | Likes Like |Link to Comment
  • Growth In The Era Of Human Capital [View article]
    DA:

    Well stated.

    Capital goes where it can produce results.

    It has been rather consistently reported and written about that U.S. employers have literally millions of jobs posted and unfilled, simply for the lack of qualified applicants. One of the major problems faced in the U.S. is that politicians would rather pander for votes by subsidizing, in the form of transfer payments, ignorance and lack of skills, than to support and insist upon the U.S. labor force remaining competitive with the rest of the world, Asia in particular.

    This lack of leadership cannot have a beneficial outcome for U.S, competitiveness or for the future standard of living of its citizens.
    May 23, 2015. 02:34 PM | 1 Like Like |Link to Comment
  • Mid - May Market Update, And The Uselessness Of Grand Predictions [View instapost]
    RD:

    I wasn't promoting buying bonds. I was pointing out that a rapid upward rate excursion is unlikely and that stocks, historically, have not collapsed as rates increased. On the contrary, they rose in tandem until such time that rates got so high that the yield curve inverted.
    May 22, 2015. 10:02 PM | 1 Like Like |Link to Comment
  • Mid - May Market Update, And The Uselessness Of Grand Predictions [View instapost]
    But, we're not going to have 4% ten years anytime soon.

    Corporations have been selling bonds like crazy for six years.
    May 22, 2015. 07:55 PM | 1 Like Like |Link to Comment
  • Best Ways To Invest -- What's Your Opinion? A Place To Share Ideas! #75 [View instapost]
    FG:

    It's all now typical kneejerk CW behavior. Anything associated with yield or oil prices moving in inverse directions, based on actual changes or fear thereof. Doesn't really matter whether the negative effects imagined will actually be realized.

    Similarly, many have convinced themselves that broad markets move inversely to interest rates, when history shows no such thing, most especially during the early periods of rate increases.
    May 22, 2015. 03:47 PM | 2 Likes Like |Link to Comment
  • Mid - May Market Update, And The Uselessness Of Grand Predictions [View instapost]
    Transports and bonds have been running inversely from rising oil in last six months, which is no surprise.
    May 22, 2015. 01:41 PM | Likes Like |Link to Comment
  • Best Ways To Invest -- What's Your Opinion? A Place To Share Ideas! #75 [View instapost]
    FG:

    Look at six-month plot of transports vs. oil. Exactly inverse behavior, which isn't surprising.
    May 22, 2015. 12:33 PM | Likes Like |Link to Comment
  • Best Ways To Invest -- What's Your Opinion? A Place To Share Ideas! #75 [View instapost]
    But....

    A market could rise 7%, or more, before any such correction occurred, as the watchers have all found out rather painfully in the last few years. It's impossible to know that a future date offers a lower market or individual stock-price entry point.

    The best solution to this dilemma is to find issues that one judges undervalued, as they sit presently, then devote some capital to them, now. If they get priced even more favorably because of a pullback, add more capital. It's even better if the target pays an attractive dividend yield.

    Just waiting and watching can be very costly over time.
    May 21, 2015. 06:52 PM | 3 Likes Like |Link to Comment
  • SandRidge ratings cut by S&P following debt-share exchange [View news story]
    SD bonds trading $60-67, not 20-21 percent.
    May 21, 2015. 11:56 AM | Likes Like |Link to Comment
  • Best Ways To Invest -- What's Your Opinion? A Place To Share Ideas! #75 [View instapost]
    BSF:

    The constant assault on banks just adds to the merriment.

    BTW, history, at least, does not demonstrate that when rates go up, share prices fall. Usually, for a long while rates lag economic and market advances. It's only late in the game that yield curves invert, and the party is over.

    It seems that ever since 2008, people think a new paradigm applies, where rates and share prices are inversely related. If that's true, it will be the first time.
    May 20, 2015. 09:03 PM | 1 Like Like |Link to Comment
  • Paragon Offshore - It's Still Going Up [View article]
    Speaking of PGN bonds, are any of these publicly traded? I can't seem to find them on my screener. CUSIPs?
    May 20, 2015. 01:41 PM | Likes Like |Link to Comment
  • Best Ways To Invest -- What's Your Opinion? A Place To Share Ideas! #75 [View instapost]
    BSF:

    Unless the yield curve steepens, banks are going nowhere. It's amazing that with relatively narrow spreads already that some keep clamoring for a short-end rate increases, as if the economy were somehow overheated, or maybe it's just plain dopiness, thinking that higher short rates will somehow ignite things from their perpetual tepid status.
    May 20, 2015. 01:31 PM | 1 Like Like |Link to Comment
  • SandRidge Energy Preferred Convertible: A 21% Yield Paid In Shares Of SD Common [View article]
    b:

    The swapper received 27.7 million shares for debt of $50MM, which was worth about $37.5MM at market prices at the time of the swap. The post-announcement trading prices of shares since then have ranged from $1.33 - $1.13. That would indicate that the seller didn't even recover his market value of bonds and set off a new selling frenzy.

    Future bond swaps of this type have been effectively nullified, it would appear, unless done at ruinous rates of dilution.

    Like so many other small E&P firms, SD has two possible futures: 1) somehow navigate the downturn on existing cash flows, or 2) undertake a major round of secured-asset financing. All the rest is merely fooling around.
    May 19, 2015. 03:14 PM | Likes Like |Link to Comment
  • SandRidge Energy Preferred Convertible: A 21% Yield Paid In Shares Of SD Common [View article]
    b:

    One wonders why any bond holder would want to swap for equity, almost regardless of the conversion rate. It sure seems like some secured-asset funding round looms, which won't be good for any existing bond or equity holder. I guess, if I were a deep-pockets existing major bond holder, I'd be trying to make a deal to add funding and convert my existing position into secured financing, not go the other way.

    It's all very curious, presently.
    May 19, 2015. 02:53 PM | Likes Like |Link to Comment
  • SandRidge Energy Preferred Convertible: A 21% Yield Paid In Shares Of SD Common [View article]
    RL:

    As a former SD bondholder (made some money) and small SDRXP (lost a few bucks) holder, the problem, now, seems to be that it's impossible to assess why SD has made its recent highly-disruptive, but near financially-meaningless, bond swap, nor predict what they'll do next. My guess is that many former investors see things exactly that way and have decided to watch, rather than play.
    May 19, 2015. 02:13 PM | Likes Like |Link to Comment
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